FRS 102 ― tax presentation and disclosures

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Corporation Tax

Guidance

Presentation of tax under FRS 102

An entity must present changes in a current tax liability (or asset) and changes in a deferred tax liability (or asset) as a tax expense (or income) unless the item creating the current or deferred tax amount is recognised in OCI, in which case, the deferred tax is also recognised in OCI. Deferred tax arising on the initial recognition of a business combination is dealt with in accordance with FRS 102, s 29.11 and added to the goodwill recognised on the combination. See the FRS 102 ― specific deferred tax issues guidance note for further information.

Current tax

An entity must present the tax expense (or income) in the same component of total comprehensive income (ie continuing or discontinued operations, and profit or loss, or other comprehensive income) or equity as the transaction or other event that resulted in the tax expense (or income).

Deferred tax

Deferred tax liabilities must be presented within ‘provisions for liabilities’ in the balance sheet. Deferred tax assets must be presented within

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Malcolm Greenbaum

Director and Principal Trainer at Greenbaum Training and Consultancy Limited

Malcolm is a UK Chartered Accountant and Chartered Tax Advisor winning the John Wood Medal in the November 1995 CIOT sitting for the best paper on business taxation. He was previously Director of Finance and Taxation Programmes at BPP Professional Education and has delivered IFRS, US GAAP, UK Tax and VAT training (at all levels from an introduction to the complexities of IAS 39) to a multitude of organisations world-wide since 1992. Malcolm has particular experience in delivering bespoke training programmes to multi-nationals in the financial services, transport and energy sectors as well as delivering UK tax and VAT update programmes to accounting and law firms. He is passionate about training and his enthusiasm ensures that the participants enjoy the learning experience whilst gaining knowledge through their engagement in the sessions and through encouraging them to ask questions and discuss practical issues they may have. Malcolm also provides consultancy services to companies and accounting firms, including provision of VAT advice, reviewing accounting policy manuals and advising on accounting treatments of various transactions. In his spare time, Malcolm enjoys flying having gained a Private Pilot's Licence in 2014.

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